AMENDMENT TO JOHN HANCOCK CLOSED END FUNDS SERVICE AGREEMENT FOR TRANSFER AGENT SERVICES
AMENDMENT TO
XXXX XXXXXXX CLOSED END FUNDS
SERVICE AGREEMENT
FOR
TRANSFER AGENT SERVICES
THIS AMENDMENT (this “Amendment”) dated as of July 1, 2010, is entered into between Mellon
Investor Services LLC, a New Jersey limited liability company (“Mellon”) and Xxxx Xxxxxxx Patriot
Premium Dividend Fund II, Xxxx Xxxxxxx Investors Trust, Xxxx Xxxxxxx Income Securities Trust, Xxxx
Xxxxxxx Bank And Thrift Opportunity Xxxx, Xxxx Xxxxxxx Preferred Income Xxxx, Xxxx Xxxxxxx
Preferred Income Fund II, Xxxx Xxxxxxx Preferred Income Fund III, and Xxxx Xxxxxxx Tax-Advantaged
Dividend Income Fund, and Xxxx Xxxxxxx Tax-Advantaged Global Shareholder Yield Fund, each a
Massachusetts Business Trust, (each a “Client” and collectively the “Clients”).
WHEREAS, Mellon and the Clients entered into that certain Service Agreement for Transfer Agent
Services dated June 1, 2002, as amended (the “Agreement”), pursuant to which Mellon is providing
transfer agent and related services to Clients. Capitalized terms used herein, but not otherwise
defined herein, shall have the meanings set forth in the Agreement.
WHEREAS, Mellon and Clients desire to amend the Agreement as provided in this Amendment.
NOW THEREFORE, in consideration of the mutual conditions and agreements set forth herein, and for
other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,
the parties hereto agree as follows:
1. | Amendments to Agreement |
(a) | Section 2(a) of the Agreement is hereby amended and restated in its entirety to read as follows: | ||
“(a) Effective July 1, 2010, this Agreement shall continue for a term of two (2) years ending on June 30, 2012, provided however, the Clients may terminate this Agreement at any time and without penalty on ninety (90) days written notice to Mellon.” | |||
(b) | Exhibit D for each Client is hereby deleted in its entirety and replaced with the attached revised Exhibit D. | ||
(c) | Section 4(a) of the Agreement is hereby amended to add the following Section 4(a)(iv): | ||
“(iv) it shall adopt and maintain such policies, procedures and controls reasonably designed to ensure that the performance of its obligations as set forth in this Agreement is in compliance with all applicable rules and regulations, including, but not limited to those rules and regulations applicable to transfer agents performing such services as described in this Agreement and applicable to customer information.” |
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(d) | Section 6 of the Agreement is hereby amended to add the following Section (g): | ||
“(g) Subject to the following sentence, Mellon shall create and maintain in complete and accurate form all books and records required of it pursuant to its duties hereunder in accordance with all applicable laws, rules and regulations, including but not limited to records required by the Securities Exchange Act of 1934, as amended (the “1934 Act”). Mellon agrees that all such records prepared or maintained by Mellon are the property of the Client and will be preserved, maintained and made available in accordance with such applicable laws, rules and regulations and will be surrendered to the Client promptly on and in accordance with the Client’s request, provided that Mellon retain copies of such records to the extent required by applicable law or Mellon’s record retention policies.” | |||
(e) | Section 8 of the Agreement is hereby amended to add the following Section (c): | ||
“(c) If the Fund is a Massachusetts business trust, Mellon agrees that it shall have recourse only to the assets of the Client for the payment of claims or obligations as between Mellon and the Client arising out of this Agreement, and Mellon shall not seek satisfaction of any such claim or obligation from the trustees or shareholders of the Client in their capacity as such. In any case, each Client shall be liable only for its own obligations to Mellon under this Agreement and shall not be jointly or severally liable for the obligations of any other Client hereunder.” | |||
“(f) | The Agreement is hereby amended to add the following new Section 17: | ||
“17. Information Security. As part of the services provided by Mellon hereunder, Mellon agrees that it shall take the steps and security precautions outlined in its information security policies and procedures, a summary of which has been provided to each Client. Each Client acknowledges that such policies and procedures are subject to change at any time by Mellon, provided that the protections afforded thereby will not be intentionally diminished in comparison with those provided by Mellon to Client prior to such change. Mellon shall notify Client of any unauthorized use of, or unauthorized access to, Client nonpublic personal information (as defined by applicable law) promptly upon Mellon becoming aware of such unauthorized use or unauthorized access.” |
2. | Term of the Amendment. This Amendment shall become effective upon due execution and delivery by both parties hereto, and shall remain in effect for so long as the Agreement shall remain in effect. |
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3. | Ratification. Except as expressly set forth herein, the Agreement is not modified hereby and shall remain in full force and effect in accordance with the respective provisions thereof and is in all respects ratified and affirmed. |
4. | Partial Invalidity. If any provision of this Amendment is held to be invalid or unenforceable, such invalidity or unenforceability shall not invalidate this Amendment as a whole, but this Amendment shall be construed as though it did not contain the particular provision held to be invalid or unenforceable and the rights and obligations of the parties shall be construed and enforced only to such extent as shall be permitted by applicable law. |
5. | Counterparts. This Amendment may be executed in two or more counterparts, each of which, when executed and delivered, shall be deemed an original for all purposes, but all of which together shall constitute one and the same instrument. |
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IN WITNESS WHEREOF, Mellon and Clients have caused these presents to be duly executed as of the day
and year first above written.
MELLON INVESTOR SERVICES LLC
By: | /s/ Xxxxxx XxXxxxxx | |||
Name: | Xxxxxx XxXxxxxx | |||
Title: | Relationship Manager |
XXXX XXXXXXX PATRIOT PREMIUM DIVIDEND FUND II
XXXX XXXXXXX INVESTORS TRUST
XXXX XXXXXXX INCOME SECURITIES TRUST
XXXX XXXXXXX BANK AND THRIFT OPPORTUNITY FUND
XXXX XXXXXXX PREFERRED INCOME FUND
XXXX XXXXXXX PREFERRED INCOME FUND II
XXXX XXXXXXX PREFERRED INCOME FUND III
XXXX XXXXXXX TAX-ADVANTAGED DIVIDEND INCOME FUND
XXXX XXXXXXX TAX-ADVANTAGED SHAREHOLDER YIELD FUND
XXXX XXXXXXX INVESTORS TRUST
XXXX XXXXXXX INCOME SECURITIES TRUST
XXXX XXXXXXX BANK AND THRIFT OPPORTUNITY FUND
XXXX XXXXXXX PREFERRED INCOME FUND
XXXX XXXXXXX PREFERRED INCOME FUND II
XXXX XXXXXXX PREFERRED INCOME FUND III
XXXX XXXXXXX TAX-ADVANTAGED DIVIDEND INCOME FUND
XXXX XXXXXXX TAX-ADVANTAGED SHAREHOLDER YIELD FUND
By: | /s/ Xxxxxxx X. Xxxxx | |||
Name: | Xxxxxxx X. Xxxxx | |||
Title: | Chief Financial Officer |
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Exhibit D
STOCK TRANSFER FEE SCHEDULE
The following schedule is intended to be a comprehensive summary of the fees associated with this
proposal. The pricing as listed below is valid for ninety days from the date of submission or
until “date”. Fees are not subject to increase during the initial term.
Initial Term of Agreement:
|
Two (2) Years1 | |
Fees Not Subject to Increase
|
Two (2) Years |
Administration & Account Maintenance
Mellon will assign a Client Service Manager to consult with Client on all facets of stock
transfer administration, including, but not limited to, securities regulations, transfer
requirements, structuring of annual meetings, stock option exercises, cash and stock dividends,
etc.
Monthly OFAC Reporting is included in the monthly administration and accounts maintenance fees
listed below.
Administration & | Administration & | |||||||
Account Maintenance | Account Maintenance | |||||||
(per month) | (per month) | |||||||
Fund Name | 2010-2011 | 2011-2012 | ||||||
Xxxx Xxxxxxx Bank & Thrift (“BTO”) |
$ | $ | ||||||
Xxxx Xxxxxxx Income Securities Trust (“Income Securities”) |
$ | $ | ||||||
Xxxx Xxxxxxx Investors Trust (“Investors Trust”) |
$ | $ | ||||||
Xxxx Xxxxxxx Patriot Premium Dividend II (“Patriot Prem Div II”) |
$ | $ | ||||||
Xxxx Xxxxxxx Preferred Income (“Preferred Income”) |
$ | $ | ||||||
Xxxx Xxxxxxx Preferred Income II (“Preferred Income II”) |
$ | $ | ||||||
Xxxx Xxxxxxx Preferred Income III (“Preferred Income HI”) |
$ | $ | ||||||
Xxxx Xxxxxxx Tax-Advantaged Global Shareholder Yield Fund (“Tax-Adv. Global S/H Yield”) |
$ | $ | ||||||
Xxxx Xxxxxxx Tax-Advantaged Dividend Income Fund (“Tax-Adv. Div Income”) |
$ | $ |
1 | Subject to Section 2(a) of the Agreement |
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The Administration and Account Maintenance fees cover all of the services and are subject to the
allowances listed below.
— All allowances are on a per fund basis
Tax-Adv. Global | ||||||||||||||||||||||
Fee | BTO | Income Securities | Investors Trust | Patriot Prem DIv II(b) | Preferred Income | Preferred Income II | Preferred Income III | S/HYield | Tax-Adv. Div Income | |||||||||||||
No. of Active Accounts Maintained
|
$/Year | |||||||||||||||||||||
No. of Inactive Accounts
|
% of Active A/C Fee | |||||||||||||||||||||
No. of Dividend Reinvestment Accounts Maintained
|
$ | 4.00 | ||||||||||||||||||||
No. of Legal Review Items Processed
|
$ | |||||||||||||||||||||
No. of Certificates Issued & Book Entry Credits |
||||||||||||||||||||||
No. of Certificates Cancelled & Book Entry Debits |
||||||||||||||||||||||
No. of Additional Mailings per Year (including one enclosure)
|
See Below | |||||||||||||||||||||
No. of Reports, Analyses, Lists, or Labels
|
See Below | |||||||||||||||||||||
No. of Inspectors of Election |
||||||||||||||||||||||
No. of Respondent Bank Omnibus Proxies
|
$ | |||||||||||||||||||||
No. of S/H Telephone Calls Handled by IVR System (d) |
||||||||||||||||||||||
No. of S/H Telephone Calls Transferred from IVR to CSR (d)
|
$ | |||||||||||||||||||||
No. of Correspondence Items Responding to S/H Inquiries
|
$ | |||||||||||||||||||||
No. of Investor ServiceDirect® Transactions (e) |
(a) | IVR = Interactive Voice Response; CSR = Customer Service Representative | |
(b) | ISD transactions are defined as any shareholder transaction initiated through ISD, including, but not limited to, share sales or purchases, duplicate statement or tax form requests, address or pin changes, account changes or updates and certificate requests. |
Stock Transfer Fee
Schedule — Page 2
6
All allowances are on a per fund basis
Tax-Adv. | ||||||||||||||||||||||
Global S/H | ||||||||||||||||||||||
Fee | BTO | Income Securities | Investors Trust | Patriot Prem Div II | Preferred Income | Preferred Income II | Preferred Income III | Yield | Tax-Adv. Div Income | |||||||||||||
No. of State Mandated Due Diligence Mailings for Lost Property
|
S per a/c S min. | |||||||||||||||||||||
No. of SEC Mandated Lost S/H Database Searches
|
$ per a/c 0 min | |||||||||||||||||||||
MLink Administration Fee (Electronic delivery of material) |
||||||||||||||||||||||
Evote Administration Fee |
||||||||||||||||||||||
Telephone Votes |
||||||||||||||||||||||
Internet |
||||||||||||||||||||||
Investor / Broker Directed Movement of Shares
|
$ |
Stock Transfer
Fee Schedule — Page 3
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Dividend Disbursement Fee
Number of dividends processed per year. The dividend disbursement fee includes all of the services
listed below.
Fund Name | Included | |||
BTO |
||||
Income Securities |
||||
Investors Trust |
||||
Patriot Prem Div II |
||||
Preferred Income |
||||
Preferred Income II |
||||
Preferred Income III |
||||
Tax-Adv. Global S/H Yield |
||||
Tax-Adv. Div Income |
Preparing and mailing checks |
Reconciling checks |
Preparing payment register in list form |
Withholding and filing taxes for non-resident aliens and others |
Filing federal tax information returns |
Processing “B” and “C” notices received from the IRS |
Mailing required statements (Form 1099DIV or Form 1042) to registered holders |
Maintaining stop payment files and issuing replacement checks |
Maintaining separate dividend addresses |
Receiving, verifying and posting funds to cover entire dividend distribution on mailing date
of checks |
Stock Transfer
Fee Schedule — Page 4
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Escheatment Services
Annual Compliance Services
SEC Mandated Electronic Database & New Address Retrieval Mailing
(subject to the following minimum)
(subject to the following minimum)
Each state mandated due diligence mailing |
$per account $ | |
(subject to the following minimum) | $per account $ |
In-Depth Search and Location Services
(Annual compliance services include all of the services listed below)
(Annual compliance services include all of the services listed below)
• | Assist in establishing compliance with the unclaimed property requirements of all jurisdictions that may have a claim on escheatable property held by your organization |
• | Processing records and property subject to reporting based upon current state statutes, rules, and regulations |
• | Requesting penalty and interest release agreements and indemnification from future claim agreements (on property remitted) from the states that offer such agreements |
• | Identifying property that has become escheatable since the last filing date |
• | Assist in reviewing state regulations to determine if there have been any changes in reporting procedures |
• | Reporting and remitting property to states |
CLIENT SERVICE DIRECT® System Access
(the Client ServiceDirect fee includes all of the services listed below)
(the Client ServiceDirect fee includes all of the services listed below)
• | Providing client access to Mellon’s mainframe inquiry and internet based system for management reporting and shareholder records |
• | Providing daily data on registered shareholders |
• | Providing daily access to proxy tabulation file during proxy season |
DIRECT REGISTRATION/PROFILE SYSTEM |
||||
Enrollment Fee |
||||
Annual Surety Fee |
||||
Stock Distribution Event — full, full and fractional shares |
$ | |||
DRS Fee, per statement |
$ | |||
Investor directed movement of shares, each |
$ | |||
Broker directed movement of shares, each |
$ | |||
DRS/Profile reject fee, each |
$ | |||
DRS/Profile Broker Authorization Form, each |
$ |
Stock Transfer
Fee Schedule — Page 5
9
ACH/DIRECT DEPOSIT SERVICES |
||||
Initial Setup Fee |
||||
Annual Maintenance Fee |
||||
ACH file transmission, each distribution, per item |
||||
Placement of Stop Payment Order |
$ | |||
Returns/Reversals, per occurrence |
$ | |||
(Annual Maintenance includes all of the services listed below) |
Processing returned authorization forms
Posting bank information to accounts
Creating pre-note transactions and sending to clearinghouse
Following up on rejects
Produce and mail checks for returned items
Posting bank information to accounts
Creating pre-note transactions and sending to clearinghouse
Following up on rejects
Produce and mail checks for returned items
Stock Transfer
Fee Schedule — Page 6
10
ADDITIONAL SERVICES AVAILABLE UPON REQUEST
SHAREHOLDER LISTS AND ANALYSES |
||||
Minimum charge for each of the below services |
$ | |||
Lists, per name listed |
$ | |||
Labels, per label printed |
$ | |||
Analysis, per name passed on database |
$ | |||
Analysis, per name listed in report |
$ | |||
Custom Lists or Analyses |
STANDARD MAILING SERVICES |
$ | |||
Minimum charge for each of the below services |
||||
Addressing mailing medium, per name |
$ | |||
Affixing labels, per label |
$ | |||
Machine Inserting |
$ | |||
1st Enclosure, per piece 2nd Enclosure, per
piece Each Enclosure thereafter, per piece
Manual Inserting |
OTHER SERVICES |
Confidential Proxy Voting |
Dividends — Special Cash Dividends |
Electronic Distribution of Materials |
Foreign Tax Re-claim |
Householding of Annual Meeting and Other Materials |
Interactive Online Meeting Services |
Logistics Services (including document transportation, fulfillment, |
printing and media placement) |
Mailing Quarterly or Periodic Reports |
Maintaining Mail Lists |
Secondary Offerings or Closings |
Stock Splits and Stock Dividends |
Special Meetings |
Survey Tabulation |
Stock Transfer Fee
Schedule — Page 7
11
ADDITIONAL SERVICES PROVD3ED BY MELLON
In addition to transfer agent services, Mellon Investor Services also
provides the following related services.
Contact your Sales Representative or Client Service Manager for additional information.
Contact your Sales Representative or Client Service Manager for additional information.
Bank/Broker Distributions
Corporate Stock Buy-Back Services
Custodial Services
Direct Purchase & Dividend Reinvestment Services
Employee Stock Option Plan Administration
Employee Stock Purchase Plan Administration
Escrow Services
Exchange or Tender Offer Processing
Financial Planning Services
Odd-Lot Program Administration
Proxy Solicitation
Stock Watch (beneficial owner identification)
Subscription Agent Services
Rights Agency
Warrant Agency
Corporate Stock Buy-Back Services
Custodial Services
Direct Purchase & Dividend Reinvestment Services
Employee Stock Option Plan Administration
Employee Stock Purchase Plan Administration
Escrow Services
Exchange or Tender Offer Processing
Financial Planning Services
Odd-Lot Program Administration
Proxy Solicitation
Stock Watch (beneficial owner identification)
Subscription Agent Services
Rights Agency
Warrant Agency
Stock Transfer Fee
Schedule — Page 8
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EXPENSES AND OTHER CHARGES
Fees and Out of Pocket Expenses: The cost of stationery and supplies, including but not limited to
transfer sheets, dividend checks, envelopes, and paper stock, together with any disbursement for
telephone, postage, mail insurance, travel for annual meeting, link-up charges for ADP and tape
charges from DTC are billed in addition to the above fees. All charges and fees, out of pocket
costs, expenses and disbursements of Mellon are due and payable by Client upon receipt of an
invoice from Mellon.
With respect to any shareholder mailing processed by Mellon, Client shall, at least one business
day prior to mail date, provide immediately available funds sufficient to cover all postage due on
such mailing. For any dividend mailing, Client shall, at least one business day prior to the mail
date, also provide immediately available funds sufficient to pay the aggregate amount of dividends
to be paid.
Share Sale Program: Client may appoint Mellon to administer, through Mellon’s affiliate, Mellon
Bank, N.A., a program allowing Client’s shareholders to liquidate book-entry shares, held in the
Direct Registration System (“DRS”), pursuant to the Client’s stock purchase and/or dividend
reinvestment plan. The charge for each such sale, and the process for selling such shares, shall be
as described in the Client’s plan. If Client does not have a separate stock purchase or dividend
reinvestment plan, then Client hereby appoints and directs Mellon to implement and administer,
through Mellon Bank, N.A., a share selling program allowing Client’s shareholders to liquidate DRS
shares. The transaction fee for each such sale shall be $ plus $ per share. Under the program, upon
receipt of a sell request by a registered shareholder, Mellon Bank, N.A. will process the request
through FutureShare Financial (“FSF”), a registered broker/dealer and member of NASD/SIPC and an
affiliate of Mellon. Proceeds of the sale will be sent to the shareholder in the form of a check
(less the transaction fee). Sale requests will typically be combined with other sale requests
received from Client shareholders and shares will be submitted in bulk to FSF for sale. Shares will
be sold usually within one business day of Mellon’s receipt of the sale request, but in no event
more than five business days (except where deferral is necessary under state or federal
regulations). The price per share received by the selling shareholder will equal the market price
Mellon receives for the shares (or if more than one bulk trade is executed on the day the shares
are sold, then the price per share shall equal the weighted average market price received for all
Client shares sold that day).
Offering Administration Fee: A minimum fee of $will be imposed for activities associated with
initial public offerings (IPO’s), secondary offerings and/or closings. The fee covers the
coordination of efforts necessary between Mellon, the Client’s underwriters, the banknote company
and DTC in order to effect the closing. This fee will cover the issuance of up to 200 certificates
and/or book-entry credits. Certificates and/or book-entry credits over this amount will be billed
at $ each. This fee is in addition to any fees Mellon may charge for coordination of selling
shareholders, custody services and/or escrow services.
Conversion: If an out-of-proof condition exists at the time of conversion, and such condition
is not resolved within 90 calendar days of such conversion, Client agrees to provide Mellon
with funds or shares sufficient to resolve the out-of-proof condition promptly after the
expiration of such 90 day period.
Deconversion: Upon expiration or termination of this Agreement, Client shall pay Mellon a fee for
deconversion services (e.g., providing shareholder lists and files, producing and shipping
records, answering successor agent inquiries). This fee shall be based on Mellon’s then-current
deconversion fee schedule. Mellon may withhold the Client’s records, reports and unused
certificate stock pending Client’s payment in full of all fees and expenses owed to Mellon under
this Agreement.
Legal Expenses, System Modifications: Certain expenses may be incurred in resolving legal matters
that arise in the course of performing services hereunder. This may result in a separate charge to
cover Mellon’s expenses (including the cost of external or internal counsel) in resolving such
matters; provided that any legal expenses charged to the Client shall be reasonable.
In the event any federal, state or local laws, rules or regulations are enacted that require Mellon
to (i) make any adjustments and/or modifications to its current system, or (ii) provide additional
services to Client for which Mellon is not being compensated hereunder, then Client shall
compensate Mellon (a) on a pro rata basis proportionate to the Client’s registered shareholder
base, for the costs associated with making such required adjustments and/or modifications, or (b)
according to Mellon’s standard fees established, in good faith, with respect to such additional
services.
Stock Transfer
Fee Schedule — Page 9
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Other Services: Fees for any services provided to Client by or on behalf of Mellon hereunder that
are not set forth above will be based on Mellon’s standard fees at the time such services are
provided or, if no standard fees have been established, an appraisal of the work to be performed.
Stock Transfer
Fee Schedule — Page 10
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